Skip to main content

Whom does the Rs. 2000/- tax credit help?

In this year's budget, the tax slabs are unchanged and Rs. 2000/- tax credit has been introduced. The tax slabs as such remain the same

For both Men and Women in India,

Income                       - Tax slab
upto 2 Lakhs              - Nil
2-5 Lakhs                  - 10%
5-10 Lakhs                - 20%
Above 10 Lakhs        - 30%

This Rs. 2000/- tax credit is not for all the tax-payers. It benefits 1.8 crore people in the income group of 2-5 lakhs. Essentially people who are getting less than 2 Lakhs (tax would anyway be NIL) and more than 5 Lakhs have their tax rates unchanged without any tax credit. For those who are under 2 Lakhs will not be credited Rs. 2000/-

The individuals less than 60 years of age will be paying Rs.2000/- lesser if their income is between 2.2 and 5 lakhs. If they are earning more than 2 lakhs and less than 2.2 lakhs, there will be no tax for them.
Similarly for the senior citizens, if their income is between 2.7 and 5 lakhs, they can reduce their tax liability by Rs. 2000/- before paying their tax. If their income is between 2.5 and 2.7 lakhs, they don't have to pay any tax.

Please note that, submitting Income tax return is mandatory for everyone. Even if you have completely paid the tax liable, it is necessary to submit your returns separately. Also, if you are not liable to pay any tax and have some income less than the taxable income, then also its necessary to submit the tax return.

Let me know your thoughts.

Comments

Popular posts from this blog

Nokia E51 WLAN Settings

Nokia E51 is a smart phone with almost all the features available in it. It looks really slim and comes in three colors. It has loads of features and highlight of them all is the connection through the Internet through WLAN. You can get a Internet connection from the service provider and ask for the wi-fi router. With the wi-fi router, you can connect to the Internet through various other devices like Laptop, Nokia E51 etc., You will be provided with the password for the WLAN connection and only if you enter the password correctly you will be connected to the Internet through that WLAN. As you may expect, this password will be asked only when you connect to Internet through this WLAN for the very first time. In Laptop/Computer, you have Network settings to identify and modify the settings if wrongly entered. But this is somewhat tricky in case of Nokia E51! In Nokia E51, You have the option of Browse WLAN right at the home page for you. If you have customized for something different, u

Internet not working on laptop - what should you do?

 When the internet is not working, consider looking at the available networks and see if you can switch to any other internet that would work Further, troubleshoot by restarting the modem and the laptop once to make sure there are no issues with either of them. If none of those works, consider contacting your interest service provider to help troubleshoot.

Treasury bonds Vs high yield savings

 You have some additional cash and are looking for the best place to park to get more money from it? If you answered yes, couple of options that you might be considering could be 1. Treasury bonds 2. High yield savings with bank fixed deposits This is especially in United States.  First let’s look at the commonalities: 1. Both are absolutely safe and assured 2. The capital preservation is assured Now, let’s look at when we should look for which one 1. If you could need this money anytime soon (within the next six months to a year or lesser), great option is to choose high yield savings. One option to consider is PayPal savings (which offer 4%+ APY these days.  2. If you don’t need it immediately and consider ways to get the maximum amount in an assured way, you can consider 15 month fixed deposit in certain banks, which offer over 4.65% APY for 15 months. 3. If you think the inflation is going to remain high and want to save with the government, you can choose the treasury bonds as an